Morgan McSweeney has resigned as Sir Keir Starmer’s chief of staff amid the fall-out from the Peter Mandelson scandal.
Several Labour MPs blamed him for the appointment of the former Labour peer as ambassador to the US.
Politics latest: Live updates as Sir Keir Starmer’s chief of staff resigns
Lord Mandelson was sacked from that position in September, but new Epstein files suggesting he shared confidential information with the convicted sex offender when he was a cabinet minister brought the issue back into the spotlight.
In a statement, Mr McSweeney said: “The decision to appoint Peter Mandelson was wrong. He has damaged our party, our country and trust in politics itself.
“When asked, I advised the prime minister to make that appointment and I take full responsibility for that advice.
“In public life, responsibility must be owned when it matters most, not just when it is most convenient. In the circumstances, the only honourable course is to step aside.”
Read more: From svengali to sacked, who is Morgan McSweeeny?
Mr McSweeney ran Sir Keir’s Labour leadership bid. There have long been concerns about how much influence he holds, with many Labour MPs accusing him of marginalising the left within the party.
He was close with Lord Mandelson and is said to have pushed for him to get the top diplomatic job over other candidates.
In a statement responding to his resignation, Sir Keir said it had been an “honour” to work with his right-hand man.
He added: “He turned our party around after one of its worst ever defeats and played a central role running our election campaign. It is largely thanks to his dedication, loyalty and leadership that we won a landslide majority and have the chance to change the country.
“Having worked closely with Morgan in opposition and in government, I have seen every day his commitment to the Labour Party and to our country. Our party and I owe him a debt of gratitude, and I thank him for his service.”
Morgan McSweeney. Pic: Shutterstock
Deputy chiefs to step up
Sir Keir asked his deputy chiefs of staff, Jill Cuthbertson and Vidhya Alakeson, to be acting chiefs of staff, Sky News understands.
Both officials have been with Sir Keir since becoming leader of the opposition.
Ms Cuthbertson was his private secretary and managed his time and commitments, basically serving as a gatekeeper. She held the same role for Ed Miliband and Gordon Brown.
Ms Alakeson has responsibility for policy and delivery. She was Sir Keir’s director of external relations when he was leader of the opposition, forging ties with the business community.
The former deputy chief executive of the Resolution Foundation also had government experience: she served in the No 10 strategy unit and in the Treasury during the last Labour government.
Jill Cuthbertson. Pic: LinkedIn
Vidhya Alakeson. Pic: LinkedIn
Sir Keir’s judgement criticised over Mandelson
Meanwhile, the Mandelson scandal has also led to questions over Sir Keir’s judgement.
Cabinet minister Pat McFadden told Sky News he did not think Mr McSweeney should resign as responsibility for appointments “lies with the prime minister”.
Reacting to the news, veteran left-wing rebel John McDonnell posted on X: “Morgan McSweeney’s resignation is the right measure but let’s remember the old adage: Advisers advise but ministers decide.”
Richard Burgon, another left-wing critic, said the resignation was an “important first step” but called for an independent inquiry “into the practices that McSweeney & Mandelson undertook in the Labour Party”.
“There is a lot to do to rid the party of the nasty factionalism that has left Labour so unpopular with the public,” he added.
However, other MPs hope Mr McSweeney’s resignation will put the matter to bed.
Karl Turner said it was the right decision and Labour must now “move on”.
Oliver Ryan, the Labour MP for Burnley, said: “The hard left and hard right are chuckling & rubbing their hands with glee at all this – many for old grudges – my constituents just want their cost of living & NHS sorting out.”
Epstein files released earlier this week suggest Lord Mandelson may have shared confidential information with the paedophile financier after the financial crash, when he was the business secretary in Mr Brown’s government.
Lord Mandelson quit the Labour Party and resigned from the House of Lords following the revelations, though he still holds the title of being a “Lord”, as removing that requires legislation.
Lord Mandelson’s representatives have been contacted for comment.
The scandal has heightened questions over whether Sir Keir can survive as prime minister.
He admitted this week that he knew Lord Mandelson had kept some contact with Jeffrey Epstein following his conviction for sex offences, which was public knowledge, but said he “lied repeatedly” about the extent of their friendship.
The government is due to release documents relating to Lord Mandelson’s vetting – they have been asked to hold off while the Metropolitan Police investigates allegations of misconduct in public office.
Ministers wanted to hold back documents that could be a risk to national security or diplomatic relations – but they were forced into a climbdown following an intervention from former deputy prime minister Angela Rayner.
Now, sensitive documents will have to be referred to the cross-party Intelligence and Security Committee of Parliament.
Lord Mandelson has denied any wrongdoing in relation to Epstein. He has said he regrets maintaining a relationship with him and apologised to the sex offender’s victims.
